Insurance policies are contracts entered by
individuals in order to compensate them in case any damage is inflicted to the
insured item. Typically, insurance premiums are regularly paid in order to maintain
the efficacy of the contract. When policyholders get insurance policies, there
are several measures they need to avoid in order to fully enjoy the benefits of
the policy.
1.
Entering into insurance agreements should not
encourage policyholders to act recklessly around insured items like automobile,
house, appliances and the like. Insurance does not give them the right to be
negligent when using these items. Some insurance companies do not award
reimbursement if the cause of the damage is the recklessness of the
policyholder. Policyholders should ensure that they still employ safety
measures when using these items in order not to damage them.
2.
Policyholders should avoid duplicating any
insurance coverage over a specific insured item. Policyholders should always
verify if their current insurance agreement have already included specific
items in the coverage or not. This is to ensure that only one insurance
agreement will cover the specific item. This is important in order to avoid
paying the premium twice for the same insurance coverage. Duplicity of
insurance contracts should be avoided since the policyholder will only get
compensation for the damaged item as if there is only one insurance policy.
3.
Policyholders should avoid leaving their residence
for more than a month. Leaving the house unattended for this period of time
heightens the risk of theft and burglary. Since the house is unoccupied, the
risk of damage because of calamities or accidents is also increased. There are insurance
companies that disqualify the claims of policyholder when they discover that
the house was left unoccupied for this long period of time.
4.
Policyholders should avoid hiding any pertinent
material facts or make any misrepresentations to their insurance providers.
Most insurance contracts often include warranty against misrepresentations made
by their clients. Policyholders who misrepresent to their insurance providers
often face claims disqualification because of the deliberate act of fraud.
Aside from that, they can also be subjected to stiffer penalties if they are
found to be violating any legal regulations.
5.
In case the insured item such as house structure or
appliances have been damaged, policyholders should avoid any permanent repairs
that can restore the insured item into its normal condition unless they have
already obtained the insurer’s agreement. Most insurance companies need to
inspect the damaged item in order to validate the claim and assess the value
that will be paid back to the policyholder. Repairs should only begin after the
insurance company representative has inspected the item.
6.
When it comes to automobile insurance quotes,
policyholders should avoid making any promise of payments to third parties as
this could compromise the arrangement with the insurance company. They should
first consult with their insurance company before entering into a new
arrangement with third parties.
7. Lastly,
policyholders should never file any false claims with the insurance provider.
Insurance companies always conduct investigations in order to verify the
authenticity of the claims filed to them by their policyholders. If the
insurance company finds out that a policyholder falsified their claim, they can
disregard the insurance claim and blacklist the policyholder. Blacklisted
policyholders often have difficult time applying for insurance policies, since
they have a record of unsatisfactory or fraudulent insurance history.
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article is written by David.
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